Insurance Commissions Reform Paper : 2008

This document builds on the foundation of the March 2006 National Treasury discussion document, Contractual Savings in the Life Insurance Industry (“the Discussion Paper”), which outlined a range of proposals designed (i) to give effect to the December 2005 Statement of Intent (“SOI”) signed between the Minister of Finance and the life insurance industry, and (ii) to introduce further regulatory reforms with respect to contractual savings products. The SOI committed the life insurance industry, the National Treasury and the Financial Services Board (“FSB”) collectively to finding solutions to the challenges of improving cost effectiveness and consumer protection provided by the contractual savings products of the life insurance industry. The first phase of the SOI commitments encompasses retrospective measures to improve policyholder value for policies written in the past and existing policies.